Contractors and suppliers from Coventry and Warwickshire will be used wherever possible for the building of the new #205 million superhospital at Walsgrave.

Contractors and suppliers from Coventry and Warwickshire will be used wherever possible for the building of the new #205 million superhospital at Walsgrave.

This was revealed by the chief contractor at a special meeting of local businesses organised by the Chamber of Commerce.

Paul Wright, director of Skanska Construction, said the project, which at its peak will employ 1,000 construction staff, would offer extensive commercial possibilities for local firms.

Speakers from the NHS and the building consortium said that the contract was due to be signed this summer and a team of around 70 staff was already in place.

The first phase would be the clinical science unit due for completion in October 2003, followed by the mental-health unit in 2004 and the acute unit in 2005.

The existing Walsgrave site would be cleared in 2006 for building accommodation and the project would finish the following year.

Mr Wright said that local companies would be well placed to compete for contracts. ?The policy wherever possible is to use local contractors and suppliers because of reliability and a cost saving.

"There is often an added cost in using firms from further away because of transport and, of course, local companies know the commercial scene better than anyone.

?This is a major regional project and we will be drawing up a workforce from across the Midlands. Some of the appointed contractors will then have to employ staff drawn from the local market and use smaller companies from this area.

?We are working very hard to allow us to hit the ground running when the final paperwork is signed.?

Peter Marsh, NHS project director, told the meeting that contracts at the existing hospital had been monitored for the past three years and all details of the firms involved in the running of the hospital had been collated.